From the Wall Street Journal’s “S&P 500 Futures Slip After Index Hits Record” posted early Monday:
Futures tied to the S&P 500 edged down 0.2% after the benchmark stocks gauge posted its 20th all-time closing high of 2021 on Friday. Contracts for the Dow Jones Industrial Average, which also closed out last week at a record, ticked down 0.2%. Futures for the technology-heavy Nasdaq-100 index slid nearly 0.2%.
Shares of technology giants have taken back control of the rally in U.S. stocks over the past month, helping to push major indexes to a series of all-time highs. Investors’ concerns about owning shares that are sensitive to rising interest rates have been assuaged by a retreat in yields on U.S. government bonds. Some say the shift into economically-sensitive sectors went too far at a time when major economies like the European Union and India are grappling with fresh coronavirus outbreaks.
Investors on Monday said they were positioning for the start of earnings season, as well as data that will help to gauge whether a coming burst of inflation will prove transitory. Inflation data due on Tuesday are expected to show consumer prices picked up in March.
“All of these things need to deliver in quite a Goldilocks manner for the current gains to remain intact,” said Edward Park, chief investment officer at U.K. investment firm Brooks Macdonald. There is “a bit of a question mark in markets just saying: We’re seeing strong gains; is this quite right?” Mr. Park said.
My take: Mr. Premarket last week was wrong almost as often as he was right.